Heubach Partners with SK Capital to Buy Clariant’s Pigments Business

LANGELSHEIM, Germany/NEW YORK — The Heubach Group, in partnership with SK Capital Partners, announced a definitive agreement to acquire Clariant’s Pigments Business (Clariant Pigments). The combined business will operate under the Heubach name, creating a global pigments leader generating more than €900 million in annual sales.

The transaction values Clariant Pigments at approximately $895 million (CHF 805 million), with additional consideration of $56 million (CHF 50 million) contingent on the 2021 financial performance of the business unit. As part of the transaction, Clariant will be reinvesting for a minority stake in the combined business. Closing of the transaction is subject to customary conditions and approvals, and is expected to take place in the first half of 2022.

Heubach is a leading global producer of organic, inorganic and non-toxic anti-corrosive pigments, operating four global production locations and employing approximately 1,000 people. Clariant Pigments is a leading global provider of organic pigments, pigment preparations and dyes, operating 13 global production sites and employing approximately 1,900 people.

The combination of Heubach and Clariant Pigments is expected to create a diversified pigments player that will enhance Heubach’s and Clariant Pigments’ existing positions. The businesses share a complementary product portfolio and a regionally compatible asset footprint, which will allow for an expanded product range and wider geographical coverage to better serve customers. The combined business will continue to prioritize innovation, quality, technical service and product development in order to provide an enhanced value proposition for customers.

Johann Heubach, Chief Executive Officer of the Heubach Group, said, “We have been in pigments for more than 200 years. My late father and I set out to drive consolidation in the pigments industry, and the combination of Heubach and Clariant Pigments is a major milestone in this vision. We are extremely excited to have gained SK Capital as a partner and we are eagerly looking forward to capitalizing on their expertise in integrating and operating businesses in the global chemical industry. The fit between Heubach and Clariant Pigments is perfect. The combination of industry-leading technologies, a product portfolio serving a wide range of customer requirements, and global production and service footprint will give the newly formed Heubach Group the ability to serve our global customer base in the coatings, plastics, inks and specialty applications fields with industry-leading products and services.”

Aaron Davenport, a Managing Director of SK Capital, commented, “Clariant Pigments is a premier global colorant solutions provider, and, together with our new partners, the Heubach Group and Clariant, we see a tremendous opportunity to create significant value for all stakeholders.”

Conrad Keiijzer, Chief Executive Officer of Clariant, noted “We are pleased to announce the agreement with Heubach and SK Capital for the sale of our pigments business. We are confident that with Heubach and SK Capital, we have found the right new owners of this business, for our customers, our colleagues and our other stakeholders.”

Perstorp to Expand 2-Ethylhexanoic Acid Production Capacity

MALMO, Sweden — Perstorp recently announced that the company plans to substantially expand its production capacity of 2-ethylhexanoic acid (2-EHA) to meet increasing market needs. The investment and expansion are within the framework of Perstorp’s existing production plants, and implementation has already started.

Sam Chia, Business Manager at Perstorp, added, “We see that the market development for several applications where 2-EHA is crucial requires that we respond with an increased production capacity. We are already in the implementation phase and in just over six months from now we expect to offer more 2-EHA to the market than today.”

Perstorp also recently launched 2-Ethylhexanoic Acid Pro, a partly renewable version of 2-EHA where 25% of the product is based on renewable raw materials, based on the mass balance concept that applies physical and chemical traceability. 2-EHA Pro is one of several products in Perstorp’s Pro-Environment portfolio that are all ISCC PLUS certified and designed to help customers reduce their carbon footprint.

2-EHA is one of the flagship products of the Perstorp Group, which reportedly has the largest 2-EHA production capacity in the world. 2-EHA, a colorless liquid with one carboxylic group based on a C8 carbon chain, is widely used in esters for PVB film plasticizers and synthetic lubricants. It is also used in the production of metal soaps for paint driers, in automotive coolants and PVC stabilizers. Other application areas include wood preservatives, catalysts for polyurethane and pharmaceuticals.

“As industries are recovering and adjusting to the ongoing pandemic, demand for 2-EHA has increased significantly in the past two quarters, indicating an increased demand for high-quality raw materials. We have continued to successfully serve our customers with 2-EHA and are now investing in this expansion to meet future needs,” said Betty Lu, Vice President Business Management Oxo at Perstorp.

AkzoNobel Announces Renewable Energy Projects in China

AMSTERDAM — Two major projects to install around 8,000 solar panels are being finalized by AkzoNobel in China, helping the company to accelerate its ambition of cutting carbon emissions in half by 2030. Being installed at two Decorative Paints plants — more than 5,000 at the Shanghai site and almost 3,000 in Guangzhou — it represents further progress for the company’s greener manufacturing plans.

“We’re excited to see these two projects successfully come to life,” said Mark Kwok, Director of AkzoNobel’s Decorative Paints business in China/North Asia. “Sustainability is at the core of everything we do, whether that means improving the eco-footprint of our sites or addressing the environmental needs of our local customers and communities at large.”

Kwok added that plans are also in place to install more solar panels at the company’s manufacturing sites in Changzhou, Langfang and Chengdu. At the end of 2020, AkzoNobel’s total share of renewable electricity use was 40%, with 34 locations and 12 countries already using 100% renewable electricity.

“Increasing the amount of renewable energy we use is a key part of our People. Planet. Paint. approach to doing business more sustainably,” explained Wijnand Bruinsma, AkzoNobel’s Program Manager for Sustainability. “The new installations will make an important contribution to our ongoing sustainability achievements in China and will help drive us towards our overall goal of moving to 100% renewable electricity by 2030.”

The new solar systems will become the primary source of power at each location. Now almost fully completed, they’ll generate around 1.66 million KWh in Shanghai and 1 million KWh in Guangzhou.

Dow to Build MDI Distillation and Prepolymers Facility in Texas

MIDLAND, MI — Dow recently announced plans to build an integrated MDI distillation and prepolymers facility at its world-scale manufacturing site in Freeport, Texas. The company reports that the investment supports increasing demand for downstream polyurethane systems products, and advances Dow’s positions in construction, consumer, and industrial markets that are growing above GDP.

The new Freeport MDI facility will replace Dow’s current North America capacity in La Porte, Texas, and will also be capable of supplying an additional 30% of product to Dow’s customers. In coordination with the start-up of the new MDI facility, expected in 2023, Dow will shut down its polyurethane assets at the La Porte site.

The new facility in Freeport will reduce Dow’s carbon footprint and water usage by eliminating the need for the generation of thermal power by utilizing existing thermal energy from the Freeport site, reducing water intake and wastewater discharge (through production efficiencies), and eliminating the need for transport of raw materials.

“This MDI investment optimizes our existing asset infrastructure and enhances our global polyurethanes leadership position, further enabling us to support downstream systems customers’ growth,” said Jane Palmieri, President of Dow’s Industrial Intermediates & Infrastructure operating segment. “The back integration at the Freeport site creates a cost-competitive supply of key upstream polyurethane raw materials, ensures a reliable supply position to support our growth in downstream high-value polyurethane markets and delivers a more sustainable production process.”

Stahl Announces Blockchain-Based Collaborations

WAALWIJK, The Netherlands — Stahl has taken an important step toward enabling end-to-end supply chain visibility by actively engaging with external partners on blockchain readiness and implementation. As a first stage, Stahl has collaborated with KRAHN Chemie, an independent chemical distributor, to certify key raw materials from the point of origin onward. In the coming months, Stahl will encourage more partners to scale up blockchain readiness across its network and beyond.

Following an internal pilot of Finboot’s blockchain-based traceability system, Stahl is now launching a proof of concept with external suppliers. Specifically, KRAHN Chemie has been integrated into the blockchain traceability environment. This step enables the traceability of key raw materials throughout the supply chain, from the point of origin to finished product. In the next 12 to 24 months, Stahl will work collaboratively with more suppliers and partners to drive blockchain maturity, activate more nodes in the network, and deliver greater supply chain transparency.

John Fletcher, Chief Innovation Officer at Stahl, said, “The collaboration with KRAHN Chemie underlines our wider commitment to tackling the chemical industry’s lack of supply chain transparency. By adopting blockchain-based technology, enabled by Finboot’s MARCO platform, we can simplify and improve governance, due diligence, risk avoidance and supply chain visibility. Moving forward, I encourage more of our suppliers and partners to come forward and work with us: together, we can improve the quality of our products and shape a better world for more people."

MARCO is an ecosystem that brings blockchain technology under one roof by connecting multiple ledgers simultaneously. It can also provide a bridge between different blockchain solutions in the same supply chain.

Cristian Groenewegen, Managing Director KRAHN Chemie Benelux and Chief Sustainability Officer KRAHN Chemie Group, said, "At KRAHN Chemie, we highly value supply chain transparency and we are very pleased to collaborate with Stahl on this innovative approach. We are always euphoric to be part of such projects and would like to encourage our customers to discuss with us what can be realized in terms of sustainability and digital services."

With end consumers, leading brands and regulatory bodies increasingly concerned about the provenance, safety and environmental impact of manufactured goods, supply chain transparency is key to more effective risk management and clearer accountability. Stahl reports that, among other solutions, blockchain technology enables the creation of immutable digital records that ensure traceability, authenticity and data security across the chain of custody. The Aura Blockchain Consortium, for example, uses blockchain technology to allow consumers to access product history and proof of authenticity of luxury goods.

Birla Carbon Sites Receive Safety Performance Awards

MARIETTA, GA — The International Carbon Black Association (ICBA) awarded certificates of recognition to 12 Birla Carbon sites for achieving a level of safety performance above the industry average. The sites include the two R&D centers in the United States and India. These sites are recognized at the Gold level for their safety efforts for the calendar year 2020. Of the 12 sites, seven sites have received the Gold rating for the third consecutive year.

Twelve gold awards were awarded respectively to Birla Carbon plants across North and South America, Europe, and Asia. This achievement gains further importance since, despite the challenges associated with the COVID-19 pandemic and its impact on personnel and manufacturing facilities worldwide, Birla Carbon still upheld its safety norms for all its employees globally.

The Safety Recognition Program identifies plants that go the distance to protect the carbon black industry’s workforce. The goal is to have every person going home the same way they arrived at the worksite. This recognition was started by the ICBA to acknowledge outstanding safety records and educate policymakers and the public about the carbon black industry’s concern for making employee safety a pre-condition for successful operations. It is a voluntary program where the participating companies submit the previous year’s safety performance data, which gets certified by the company’s members on the ICBA Board of Directors. Awards are given in three categories, and the sites that meet more than one award criteria receive the highest recognition.

Speaking about the recognition, Joe Gaynor, Chief Legal, Risk and Sustainability Officer, Birla Carbon, said, “Despite the challenging times which were faced due to the pandemic, Birla Carbon continued to build and maintain its culture of safety, globally. All our plants maintained the highest safety standards for all employees, which is in many ways built on our purpose to ‘Share the Strength.’” He added, “Such recognition by the ICBA only emphasizes the value of safety for our employees and across the industry. I want to thank the ICBA for this recognition, as it motivates the industry to partner and work towards a stronger and safer future for everyone.”